RCom Bank Fraud Case: SC To Hear Anil Ambani Before Taking ED, CBI Status Reports On Record

The Supreme Court assured industrialist Anil Ambani on April 30 that he will be heard before the top court takes cognisance of Enforcement Directorate and CBI status reports in the ongoing bank fraud-linked money laundering probe against Reliance Communications, reported NDTV. SC has posted the matter for next Friday (May 8). This comes as petitioners constantly press for Anil Ambani's arrest in the bank fraud case as the SC prepares to take the status report by the investigating agencies on record.

As per NDTV, Advocate Prashant Bhushan who represents the petitioner in the case told the top court, ''CBI and ED has filed status reports. Anil Ambani was identified as the kingpin. But nothing yet. The kingpin (Anil Ambani) has not been arrested.'' On the matter, Advocate SG Mehta representing the CBI claimed, ''I cannot respond why X or Y Is not arrested. We have filed our status reports.'' Adv Mehta added that the white envelope is CBI's and a green report belongs to the ED.

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Chief Justice of India announced that the status report is taken on record and the next date of hearing is listed for next Friday. According to NDTV, Senior Advocate Kapil Sibal representing Anil Ambani said before the SC bench, ''Do hear me for 30 minutes,'', to which CJI Surya Kant assured, ''We will hear you. Before taking cognizance of report also we will hear you.''

What does the RCom-bank fraud case entail?

Reliance Communications (RCom) is a company of the Reliance Anil Ambani Group (RAAG). The money laundering case stems from a clutch of CBI FIRs registered on the basis of the complaints of State Bank of India, Punjab National Bank, Bank of Baroda and Life Insurance Corporation of India against Rcom, Anil Ambani and others. RCom and its group companies availed loans from domestic and foreign lenders, of which, a total amount of Rs 40,185 crore is outstanding, according to the ED.

The complaint filed by the SBI alleged that the bank sanctioned credit facilities to the company but due to the accused borrowers' "fraudulent" activities, the lender suffered a wrongful loss of around Rs 2,929.05 crore. According to the complaint, a wrongful loss of Rs 19,694 crore was caused to 17 public sector banks and financial institutions. Investigation found that RCom entered into "circuitous" transactions through shell entities controlled by company officials. RCom obtained discounted Letters of Credit (LCs) opened for "bogus" service-related transactions with group entities, which devolved and caused losses to banks.

ALSO READ: CBI Registers Fresh FIR Against Anil Ambani, RCom In Alleged Bank Fraud Case

Earlier this week, the ED attached fresh assets worth Rs 3,034 crore to Anil Ambani and family in the fraud-linked money laundering probe. The assets attached by ED on Tuesday include a Mumbai flat belonging to industrialist Anil Ambani and a Khandala farmhouse held jointly by his son Jai Anshul Ambani. According to ED, the provisional attachment under the Prevention of Money Laundering Act (PMLA) was made to prevent dissipation of assets and to protect the interests of banks and the public.

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